Hello and welcome to the Money Weekly Newsletter, where we cover the discrepancies in KRA's import records from China.

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KRA Records Missing Ksh2.8 Trillion in Imports From China

Kenya Revenue Authority (KRA) import records show an unexplained Ksh2.76 trillion discrepancy over the past five years, with goods exported from China to Kenya failing to appear in the taxman's import data, raising concerns over possible revenue leakages.

Data from the General Administration of Customs of China (GACC) shows China exported goods worth Ksh5.35 trillion to Kenya between 2021 and 2025. 

However, KRA recorded imports worth only Ksh2.59 trillion, leaving a gap of Ksh2.76 trillion.

The discrepancy persisted in 2025, when China reported exports worth Ksh1.3 trillion to Kenya, while KRA recorded imports of only Ksh672 billion, leaving an unexplained gap of Ksh629 billion. 

The gap had previously stood at Ksh533 billion in 2024 and Ksh723 billion in 2023.

Experts note that the mismatch is unusual because Kenya's import figures include freight and insurance costs, meaning they would ordinarily be expected to exceed China's export records. 

Experts add that the persistent gap could point to under-declaration of imports, trade mis-invoicing or other customs leakages that may have denied the government billions of shillings in tax revenue.

China has remained Kenya's largest source of imports for more than a decade, accounting for roughly a quarter of all imported goods.

Customs taxes are also among KRA's biggest sources of revenue, with the authority collecting Ksh733.7 billion in customs taxes in the nine months to March 2026.

The National Treasury has previously announced plans for KRA to work with Chinese authorities to verify the value of high-risk imports from China as part of efforts to curb trade mis-invoicing and improve customs revenue collection.

Here is a quick recap of the top news stories for the week:

• The Ministry of Transport has announced plans to replace court prosecutions for minor traffic offences with an administrative Instant Fines System under the proposed Traffic (Amendment) Bill, 2026. The Ministry says the technology-driven system will use certified speed cameras, digital payments and an appeals process to improve road safety, reduce corruption and boost compliance. Speed cameras will first be installed on high-risk roads before nationwide expansion. The reforms are part of the National Road Safety Action Plan (2024–2028). 

• KRA is set to auction more than 1,700 packages of equipment imported for Kenya Power's Last Mile Connectivity Project following a tax dispute with the utility. The authority says the consignment has remained at the Syokimau Inland Container Depot since April 2026 and will be sold if it is not cleared within 30 days. Kenya Power, however, insists the equipment is tax-exempt, arguing it was imported for a donor-funded government electrification project and that the National Treasury has already issued the required exemption. The equipment is meant for Phase Six of the Last Mile Connectivity Project. 

• Uganda Railways Managing Director Benon Kajuna has recorded a statement with police over the disappearance of 113 train wagons that reportedly went missing in Nyahururu, Kenya, between 2006 and 2017. Kajuna told Uganda's Parliament the wagons disappeared while the metre-gauge railway was operated by Rift Valley Railways (RVR). Officials said the wagons were transferred to a virtual station in Nyahururu before becoming untraceable. Parliament has directed Uganda Railways to provide evidence of recovery efforts and begin tracing the missing wagons.

• President William Ruto's proposed universal higher education funding model could significantly increase the amount students borrow to finance university education if approved by Parliament. The government plans to reduce the scholarship component and rely more heavily on HELB loans to cover tuition. Under the proposal, a student pursuing a degree costing Ksh300,000 annually could graduate with a tuition debt of about Ksh1.2 million, up from roughly Ksh400,000 under the current system, excluding upkeep loans. 

Catch Up on More News and Money Tips

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New Funding Model to Leave Graduates With HELB Loans of Up to Ksh1.2 Million

Graduates could leave campus with HELB loans of up to Ksh1.2 million if proposed changes to the higher education funding model are approved by Parliament.

Under the proposal, government scholarships would be replaced by student loans, meaning learners could borrow the full cost of their tuition instead of receiving a mix of scholarships and HELB funding.

The government is also considering securitising HELB loans to raise more funds for higher education, while a separate Bill before Parliament proposes merging HELB, the Universities Fund and the TVET Funding Board into a single Tertiary Education Funding Authority.

The proposals are expected to be tabled in Parliament ahead of the September university admissions.

Watch the video to learn more.

@money254hq

New Funding Model to Leave Graduates With HELB Loans of Up to Ksh1.2 Million Graduates could leave campus with HELB loans of up to Ksh1.2 ... See more

That’s a wrap for this week’s Money Weekly!

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